Retail & Restaurants

Washington, DC

A Leader in U.S. Retail

The Washington, DC is the economic engine of a metropolitan region with a population of more than six million residents.

DC’s daytime population swells to more than one million, has one of the highest educated workforces in the country, and is a top destination for international travelers.

The retail scene of Washington, DC has become a national and international destination. The city’s diverse mix ranges from boutique storefronts lined along cobblestone walkways in historic Georgetown, higher-end retailers in the center of Downtown DC, and online stores showcasing their products in trendy brick-and-mortar shops in Shaw.

DC’s retail market is expected to remain strong as the metropolitan area’s economy is expected to grow by an average of 34,000 jobs per year for the next five years (Dr. Stephen Fuller, IHS Markit). In addition, it is estimated that DC will experience roughly double the nation’s percentage growth in food and beverage spending in the next five years (CBRE FastReport).

Quick Facts

$13.9 Billion

2X Building Permits

Residential building permits are being issued at twice the rate as the previous decade in DC.

Source: U.S. Census, Building Permits Survey

38 Grocery Stores

38 new or modernized grocery stores have opened in DC since 2000 with 8 more in the pipeline as of September 2017.

Source: WDCEP Research

Why Retail & Restaurants Choose DC

Diverse Customer Base

The District of Columbia offers an increasing residential base (681,170 – a 13% increase from 2010) and a solid daytime population of more than one million people. As an international market DC attracts an additional 22 million visitors who spend $7.3 billion. Situated in the center of the nation’s fourth-largest metropolitan region, DC offers the prime location to tap into more than 6 million people whose median household income is in excess of $95,000.

Growing Food and Beverage Market

The growing restaurant scene has earned DC its first Michelin Guide with 14 restaurants earning Michelin stars along with being named “Restaurant City of the Year” by Bon Appetit in 2016. DC’s homegrown restaurateurs have also received national recognition. Aaron Silverman’s Rose’s Luxury was awarded best new restaurant by Bon Appetit in 2014 and his Pineapple & Pearls restaurant along with Himitsu and Timber Pizza Co. made Bon Appetit’s 2017 best new restaurant list. Internationally recognized chef, Jose Andres received Outstanding Chef honors from the James Beard Foundation in 2011.

Additionally, Maketto (H Street, NE) was listed by GQ as one of The Best Denim & Casual Shops in America in 2015 and Blue Mercury was acquired by Macy’s in 2015 at a value of $210 million (Pitchbook).

Increasing Sales

With an estimated $13.9 billion in taxable retail and restaurant sales in 2016 it is clear that retailers and shoppers alike have a renewed confidence in DC as a retail hot spot.

Booming Market for Retailers & Grocery Stores

National chains such as Apple, Best Buy and Target have recognized the spending power of DC’s residents and local retailers such as Bus Boys & Poets, Georgetown Cupcake and Ben’s Chili Bowl have become icons in their respective neighborhoods. New grocery stores continue to open on a yearly basis and existing stores are being modernized. Since 2000, 38 new or modernized grocery stores have opened in DC.

Sector Spotlight: DC’s Grocery Store Growth

Grocery stores are economic and social hubs that can transform neighborhoods. Many of DC’s neighborhoods have been revitalized by new grocery stores, most notably Logan Circle with the arrival of Whole Foods at 14th & P Streets in 2000. Qualified grocery stores can also take advantage of incentives via the Supermarket Tax Exemption Act of 2000. For more information please download the Supermarket Tax Incentive summary.

Business Spotlight

Roadside Development

“We’ve been the largest attraction of young people in the United States for the last decade, therefore we’ve attracted some of the best and brightest minds throughout the entire United States to Washington, DC and it’s because of the jobs we offer but also because of the quality and the way of life that we offer. And that’s why I’d invest in Washington, DC, because its future is enormously bright.” – Richard Lake, Partner, Roadside Development